NetEase (NASDAQ: NTES ) �shares were up 7%, after it crushed analysts estimates in Q4, and finished 2012 strong, all due to positive growth in its online games business and advertising services�
In 2012, the company saw 12.1% growth in revenues, totaling�RMB8.4 billion�(US$1.3 billion). Driving that growth was an 11.2% increase in online games, and a 6.9% increase in advertising revenues, each totaling�RMB7.3 billion�(US$1.2 billion), and�RMB850.2 million�(US$136.5 million), respectively. Altogether, that helped Netease rake in�RMB3.6 billion�(US$583.9 million), or �$4.44 per diluted share. Meanwhile, analysts only expected $4.23 per share.
In Q4, revenues were�RMB2.3 billion�(US$373.5 million), up 9.4% year to year. Games contributed�RMB2.0 billion�(US$317.4 million), up 11.1%, while advertising shot up 6.8%, to�RMB259.5 million�(US$41.7 million). Net income was up�$161.9 million, amounting to $1.23 per diluted share, while analysts estimated $1.04.
Regarding increases in gaming, Chief Executive Officer and Director of NetEase�William Ding said:
The growing popularity of our self-developed games and the newly launched expansion pack for Blizzard Entertainment's World of Warcraft��contributed to our 13.6% quarter-over-quarter increase in online game revenues, supported by the launch of new games�Kung Fu Master, Soul of the Fighter and Heroes of Tang Dynasty II.
Advertising through Netease's online portal (similar to Yahoo) was helped by increased email usage.�As of�December 31, 2012, the company had approximately 530 million registered email users.
Ding finished by saying:
In 2013, we will work to achieve growth across our businesses with enhancements to our games and services that underscore our commitment to driving content, community, communication and commerce in�China's growing online market.
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